LEADERSHIP STRUCTURE, OWNERSHIP CONCENTRATION AND FIRM SIZE ON FINANCIAL PERFORMANCE OF LISTED INSURANCE FIRMS IN NIGERIA

Résumé

The effectiveness and efficiency of the board of directors as a monitoring tool to the management
of an organization is essential to the performance of the firms. Given that board efficiency is
subject to its structure, it therefore becomes imperative for studies to empirically ascertain the
relationship between leadership structure, ownership concentration and firm size on financial
performance of listed insurance firms in Nigeria. The population comprises all the quoted
insurance firms in Nigeria while filtering technique was used to arrive at a sample size of twentythree (23) listed insurance firms in Nigeria. The hypotheses were tested using robust random
effect regression model after conducting some diagnostics tests. The findings regarding
Leadership Structure, Ownership Concentration, and Firm Size align with much of the existing
literature that suggests these factors play significant roles in shaping firm performance,
including ROE, in the context of insurance companies in Nigeria. These results underscore the
importance of effective corporate governance practices, ownership structures, and strategic
positioning in influencing financial outcomes. However, it's important to note that the impact of
these factors can vary based on specific contextual factors, such as regulatory environment,
market conditions, and industry dynamics. Future research could further explore how these
relationships evolve over time and in response to external shocks or policy changes affecting the
insurance industry in Nigeria. The study recommends among others, that Management of
Insurance companies should Ensure that the board of directors is diverse and includes members
with relevant expertise in insurance and finance. This diversity can bring different perspectives
and enhance decision-making processes. Consider separating the roles of CEO and board chair
to promote checks and balances within the leadership structure. This separation can enhance
governance and accountability. Management of Insurance companies should Encourage a
balanced ownership structure that avoids excessive concentration of control among a few
shareholders. This can mitigate risks of entrenchment and promote transparency and alignment
of interests. Foster active shareholder engagement and participation in corporate governance
processes to ensure effective monitoring and oversight of management decisions